DOJ's ATF Awards $14.3M for SAGE 1 Computing Infrastructure to Sage Systems Technologies
Contract Overview
Contract Amount: $14,265,588 ($14.3M)
Contractor: Sage Systems Technologies, LLC
Awarding Agency: Department of Justice
Start Date: 2007-11-21
End Date: 2008-09-30
Contract Duration: 314 days
Daily Burn Rate: $45.4K/day
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: ADDITIONAL FUNDING FOR SAGE 1
Place of Performance
Location: MARTINSBURG, BERKELEY County, WEST VIRGINIA, 25401
Plain-Language Summary
Department of Justice obligated $14.3 million to SAGE SYSTEMS TECHNOLOGIES, LLC for work described as: ADDITIONAL FUNDING FOR SAGE 1 Key points: 1. The contract is for computing infrastructure, data processing, and web hosting services. 2. Sage Systems Technologies, LLC is the sole awardee. 3. The contract duration is 314 days. 4. The award was made by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
Value Assessment
Rating: fair
The contract value of $14.3 million for a 314-day period appears high for basic computing infrastructure. Benchmarking against similar contracts for cloud services or data processing would be necessary to assess true value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This appears to be a sole-source award, which limits price discovery and competition. Without a competitive bidding process, it's difficult to ascertain if the government received the best possible price.
Taxpayer Impact: The sole-source nature of this award raises concerns about potential overspending, impacting taxpayer funds negatively.
Public Impact
Citizens may question the justification for a sole-source award of this magnitude. Transparency in government contracting is crucial, and sole-source awards can reduce public trust. The ATF's need for these specific services warrants scrutiny to ensure necessity and cost-effectiveness.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition and price negotiation.
- High contract value for a relatively short duration.
- Lack of detailed justification for sole-source procurement.
Positive Signals
- Award supports critical ATF operations.
- Contract is for essential IT infrastructure services.
Sector Analysis
The contract falls under the Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services NAICS code (518210). Spending in this sector is substantial across government, with significant variation based on service complexity and duration.
Small Business Impact
There is no indication that small businesses were involved in this specific award, as it appears to be a direct award to a single entity.
Oversight & Accountability
Oversight is needed to ensure the services provided meet the stated requirements and that the pricing is justified, especially given the sole-source nature of the contract.
Related Government Programs
- Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services
- Department of Justice Contracting
- Bureau of Alcohol, Tobacco, Firearms and Explosives Acquisition and Property Management Division Programs
Risk Flags
- Sole-source award lacks competitive pricing.
- Potential for overpayment due to limited market vetting.
- Contract duration and value warrant detailed cost analysis.
- Need for clear performance metrics and oversight.
Tags
computing-infrastructure-providers-data-, department-of-justice, wv, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Justice awarded $14.3 million to SAGE SYSTEMS TECHNOLOGIES, LLC. ADDITIONAL FUNDING FOR SAGE 1
Who is the contractor on this award?
The obligated recipient is SAGE SYSTEMS TECHNOLOGIES, LLC.
Which agency awarded this contract?
Awarding agency: Department of Justice (Bureau of Alcohol, Tobacco, Firearms and Explosives Acquisition and Property Management Division).
What is the total obligated amount?
The obligated amount is $14.3 million.
What is the period of performance?
Start: 2007-11-21. End: 2008-09-30.
What specific factors necessitated a sole-source award for these computing infrastructure services, and were alternative competitive approaches considered and rejected?
The justification for a sole-source award typically involves unique capabilities, urgent needs, or lack of market availability. Without further documentation, it's unclear why Sage Systems Technologies was the only viable option. A thorough review of the acquisition planning documents would reveal if competitive solicitations were attempted and why they failed, or if a sole-source justification was deemed appropriate from the outset.
How does the per-unit cost or overall contract value compare to industry benchmarks for similar cloud hosting and data processing services?
Benchmarking this $14.3 million contract against similar government or commercial contracts for cloud infrastructure, data processing, and web hosting is essential. Factors like service level agreements, data storage volume, processing power, and security requirements influence pricing. A significant deviation from established benchmarks could indicate potential overpricing or a scope of work that is more extensive than initially apparent.
What are the key performance indicators (KPIs) for this contract, and how will the ATF measure the effectiveness and value derived from Sage Systems Technologies' services?
Measuring effectiveness requires clearly defined KPIs tied to the services rendered, such as uptime percentages, data retrieval speeds, security incident response times, and user satisfaction. The ATF's contract management team should actively monitor these metrics throughout the contract period. Regular performance reviews and reporting are crucial to ensure the government is receiving the expected value and that the services are contributing effectively to the ATF's mission.
Industry Classification
NAICS: Information › Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services › Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES
Contractor Details
Parent Company: OLD Harbor Native Corporation (UEI: 187615534)
Address: 900 WEST 5TH AVENUE, ANCHORAGE, AK, 00
Business Categories: 8(a) Program Participant, Category Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations
Financial Breakdown
Contract Ceiling: $14,265,588
Exercised Options: $14,265,588
Current Obligation: $14,265,588
Parent Contract
Parent Award PIID: DJA06D000022
IDV Type: IDC
Timeline
Start Date: 2007-11-21
Current End Date: 2008-09-30
Potential End Date: 2008-09-30 00:00:00
Last Modified: 2011-05-26
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